Introductionto the strategy. Subject Strategic.pptx

Strategy, introduction and deep explanation

1. LECTURE 2 Strategy LO 2–1 Know what a sustainable business strategy is and how it relates to operations and supply chain management. LO 2–2 Define operations and supply chain strategy. LO 2–3 Explain how operations and supply chain strategies are implemented. LO 2–4 Understand why strategies have implications relative to business risk. LO 2–5 Evaluate productivity in operations and supply chain management 1- 1 Instructor: Altynay Seyidova , teacher of Management department

2. Strategic Initiatives at Tesla to Address Major Obstacles for Battery-Powered Car Built thousands of “supercharging” stations Building a giant battery plant Introduced “battery swap” technology 1- 2

3. A SUSTAINABLE OPERATIONS AND SUPPLY CHAIN STRATEGY Sustainability The ability to meet current resource needs without compromising the ability of future generations to meet their needs. 1- 3

4. WHAT IS OPERATIONS AND SUPPLY CHAIN STRATEGY? Operations and supply chain strategy The setting of broad policies and plans that will guide the use of the resources needed by the firm to implement its corporate strategy 1- 4 Operations effectiveness Performing activities in a manner that best implements strategic priorities at minimum cost

5. Formulating an Operations and Supply Chain Strategy Exhibit 2.2 1- 5

6. Competitive Dimensions Exhibit 1.2 1- 6 Cost or Price: “Make the Product or Deliver the Service Inexpensively” Quality: “Make a Great Product or Deliver a Great Service Delivery speed: Delivery reliability: Coping with changes in demand

7. O t h e r P r o d u c t - S p e c i f i c C r i t e r i a : “ S u p p o r t I t ” 1- 7

8. The Notion of Trade-Offs The underlying logic is that an operation cannot excel simultaneously on all competitive dimensions. Consequently, management has to decide which parameters of performance are critical to the firm’s success and then concentrate the resources of the firm on these particular characteristics. 1- 8 Straddling When a firm seeks to match what a competitor is doing by adding new features, services, or technologies to existing activities. This often creates problems if tradeoffs need to be made

9. Order Winners and Order Qualifiers: The Marketing–Operations Link Order winners One or more specific marketing-oriented dimensions that clearly differentiate a product from competing products. Order qualifiers Dimensions used to screen a product or service as a candidate for purchase. 1- 9

10. STRATEGIES ARE IMPLEMENTED USING OPERATIONS AND SUPPLY CHAIN ACTIVITIES—IKEA’S STRATEGY Exhibit 1.3 1- 10 Activity-system maps Diagrams that show how a company’s strategy is delivered through a set of supporting activities .

11. ASSESSING THE RISK ASSOCIATED WITH OPERATIONS AND SUPPLY CHAIN STRATEGIES Supply chain risk The likelihood of a disruption that would impact the ability of a company to continuously supply products or services. 1- 11

12. OSCM Specialist Areas 1- 12

13. PRODUCTIVITY MEASUREMENT Productivity is a common measure of how well a country, industry, or business unit is using its resources (or factors of production). 1- 13

14. 1- 14 Copyright ©2017 McGraw-Hill Education. All rights reserved.

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